Cristin-prosjekt-ID: 473985
Sist endret: 22. september 2015 14:08
Cristin-prosjekt-ID: 473985
Sist endret: 22. september 2015 14:08
Prosjekt

Why do firms pay dividends? The secrets of private firms

prosjektleder

Leon Bogdan Stacescu
ved Institutt for finans ved Handelshøyskolen BI

prosjekteier / koordinerende forskningsansvarlig enhet

  • Institutt for finans ved Handelshøyskolen BI

Finansiering

  • TotalbudsjettNOK 125.000
  • Senter for eierforskning (CCGR)

Klassifisering

Vitenskapsdisipliner

Økonomi

Kategorier

Prosjektkategori

  • Anvendt forskning

Tidsramme

Avsluttet
Start: 1. september 2009 Slutt: 31. desember 2016

Beskrivelse Beskrivelse

Tittel

Why do firms pay dividends? The secrets of private firms

Vitenskapelig sammendrag

Although dividend policy is an established area of research, there are few solid conclusions and many unanswered questions. We aim to examine theories whose empirical record is mixed or very thin, using the unexplored universe of private firms.

There are many important features of private firms that enable us to push beyond the limits of existing knowledge. The more concentrated ownership structure of private firms allows us to examine the role of dividend policy when its role as a signal to equity investors is minimal. The wide cross-sectional variation in shareholder involvement as directors and officers enables us to test how dividends interact with the separation between ownership and control. The same variability allows us to examine the role of dividend policy in the conflict between majority and minority shareholders, using unusually detailed data on ownership and families. The stronger financial constraint of small firms means we can more carefully explore the role of dividends in the firm’s overall cash management. This is important, since the relationship between cash flow, cash reserves, and investment has been a matter of intense debate, with dividend policy often taken as an exogenous variable.

We can test a range of alternative predictions. Do financially constrained firms pay lower dividends to please creditors and shelter investments? Do they hold on to stable dividend payments in order to establish a reputation with prospective equity investors and to smooth their owners’ consumption? Do they hoard cash, or do they adjust their investment and dividend payments to the available cash flow? Is cash management and dividend policy different in private firms due to stronger bank dependence?

Key questions: Do private firms have a different dividend policy than comparable public firms? What is the role of dividends in conflicts between shareholders and managers, between majority and minority shareholders, and between debtholders and shareholders? How do dividends interact with the cash management and investment policy of private firms?

prosjektdeltakere

prosjektleder

Leon Bogdan Stacescu

  • Tilknyttet:
    Prosjektleder
    ved Institutt for finans ved Handelshøyskolen BI

Øyvind Bøhren

  • Tilknyttet:
    Prosjektdeltaker
    ved Institutt for finans ved Handelshøyskolen BI

Janis Berzins

  • Tilknyttet:
    Prosjektdeltaker
    ved Institutt for finans ved Handelshøyskolen BI
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